Scottish housing market activity bucks the UK trend

LBTT bands at the higher end of the market are 'prohibitively high' and are having an 'adverse effect' on the market

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House prices are set to rise in Scotland, with sales expectations remaining positive despite ongoing concerns about a lack of stock.

The Scottish market bucked the national trend in October, according to the latest RICS residential market survey, with 20 per cent more respondents across the UK reporting a fall in new buyer enquiries during the month. Agreed sales were also reported to have fallen, with 20 per cent more noting a decline in transactions during the month.

"While a rise in new enquiries and positive sales expectations are to be welcomed, this survey again underlines the concerns RICS has raised regarding the current LBTT bandings and the bottleneck they are creating in certain areas of the market," said Hew Edgar, RICS policy manager for Scotland.

""With a lack of housing stock being a pressing issue, a tax regime that can encourage property owners who eschew moving in favour of improving their current properties stymies the market and compounds housing stock issues.

"RICS has been consistent in its call for a tax system that encourages fluidity in the market. The Scottish Government must address this problem by reviewing the LBTT framework and putting in place a structure that would inject some much-needed fluidity into the market."